Kazakhstan's KMG plans to double polypropylene output at its KPI plant

MOSCOW, Dec 12 (Reuters) - Kazakhstan Petrochemical Industries Inc's (KPI) plant operated by state-owned Kazmunaigaz (KMG) plans to increase polypropylene production to 487,500 metric tons next year from 188,800 tons this year, the company told Reuters.

KPI is the largest polypropylene producer in the region, providing 1% of world output, according to its website.

Worth $2.6 billion, KPI has a capacity of 500,000 metric tons of granulated polypropylene per year, which it will near with the planned increase in output.

The plant processes propane supplied by Chevron-led Tengizchevroil (TCO) from the giant Tengiz oil field. TCO will increase supplies to 550,000 metric tons next year from a planned 258,963 tons in 2023, KMG said.

A TCO representative declined to comment on commercial matters.

KPI produced 156,404 metric tons of polypropylene during January-November this year, of which 138,435 tons were exported to Turkey, China, Europe and Russia. It processed 218,568 tons of propane.

Kazmunaigaz owns 49.5% of KPI, Samruk-Kazyna Ondeu 49.5% and private investor Firm Almex Plus the remaining 1%.

(Reporting by Reuters; Editing by Kirsten Donovan)